Magenta Partners has acquired a stake in FastPayHotels, a rapidly growing hotel wholesaler, marking its third investment from its latest growth fund targeting equity investments between £5 million and £20 million.

Information on the Target

Magenta Partners, a growth investor specializing in small and medium enterprises (SMEs), has successfully acquired a stake in FastPayHotels (FPH), a rapidly growing hotel wholesaler. FPH is known for its dynamic pricing strategies and serves as a crucial link between hotel suppliers and travel buyers, such as travel agencies and tour operators. This investment represents the third initiative from Magenta's latest fund, which focuses on equity investments ranging from £5 million to £20 million in businesses poised for growth.

Established in 2016 by entrepreneurs Alex Gisbert and Elodie Leunen, FPH differentiates itself within the industry through its selective hotel rate distribution coupled with advanced technological integration. After commencing operations in 2015, FPH has expanded its offerings to include hotel rooms across 78 countries, catering to 28 source markets. The company operates within a robust $60 billion global hotel market, which is witnessing an annual growth rate exceeding 6%, particularly fueled by the rising trend of online bookings.

Industry Overview

The hotel wholesale industry plays a pivotal role in the travel ecosystem, connecting hotel rooms with demand from travel agents and operators. As consumer preferences shift toward online booking platforms, the online travel agency segment has